Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272765 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16138
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Studies have frequently found that women are more risk averse than men. In this paper, we depart from usual practice in economics that treats risk attitude as a primitive, and instead adopt a neuroeconomic approach where risk attitude is determined by the reference point which can be easily estimated using standard econometric methods. We then evaluate whether there is a gender difference in the reference point, explaining the gender difference in risk aversion observed using traditional approaches. In our study, women make riskier choices less frequently than men. Compared to men, we find that women on average have a significantly lower reference point. By acknowledging the reference point as a potential source of gender inequality, we can begin a new discussion on how to address this important issue.
Subjects: 
reference point
risk attitude
neuroeconomics
gender
inequality
experiment
JEL: 
C90
D87
D91
J16
Document Type: 
Working Paper

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